This session, called pursuant to Proposition 58, gives the Legislature 45 days to pass legislation aimed at addressing the state’s budget deficit. Failure to approve such legislation would result in a freeze on action of non-budget bills.
In anticipation of this deadline, the Senate last week approved a budget package intended to solve a quarter of the $20 billion budget gap. The package included bills to tax purchases made on Amazon and other online vendors and lift furloughs for some state workers.
The proposal to require businesses and government agencies to withhold taxes on independent contractors has not been included in the floor versions of the emergency session budget package so far. CSDA is opposed to this short-sighted proposal because it will cost local government, including special districts, money and resources to implement the withholding, with additional resources being used to remit the withholding to the Franchise Tax Board on an annual basis.
We encourage you to join in opposing independent contractor withholding. Although the proposal is currently not included in the budget package, it is still an option that legislators are considering. The most useful form of advocacy right now would be for legislators to hear from their constituents, like you! Call your Assembly Member and Senator or send your own letter of opposition using this template. Legislators are already hesitant to vote on this proposal so we need to keep the pressure on!